Origin of the ipad

Originated in January 2011

Released in April in the same year

How the prices of ipad is determined???Demand and supply

Taking other variables constant, --demand increases, supply increases

--demand decreases, supply decreases

What causes changes in demand???Consumer income

Taste

Government legislation

Consumer expectation

Prices of substitutes

Prices of compliments

Factors affecting supply Cost of production

State of technology

Price of related goods

Government policy

Associated productsInternational plug that can be used

worldwide

USB port for computer

Car charger so it can be changed on the move

How recent developments affect marketing and pricing decisions?

------------------Competition-----------------

Microsoft and Nokia partnership to make a joint product

Consumers switching to windows mobile platform

More money invested by apple in R&D

Ensure that products are ahead of competitors

Buying an apple ipad has better marginal benefits than other products

Ensuring marginal benefit is higher than marginal cost

More people will continue buying apple products

Demand and quantity increase

Price increase

Higher profits

Cost of resourcesApple looks to expand its market

Pushes PPC out

New production facility would be built

Cost of producing one ipad increase as mortgage and workforce needs to be paid

More advertising needed

Company’s budget increase

Generate more profits to pay off budget

Price increases

Switching to substitutesImproved version of windows mobile out

in 2012

New product will have new functions

Certain consumer prefer the functions in windows mobile

Less people buy ipad

Demand drop, supply drop

Decreasing prices means lesser money earned

High pricesDue to new technology, prices goes up(as

mentioned earlier)

Some consumers were unwilling or unable to pay

These people are rationed out of the market

People wiling and able to pay continue paying

Overall quantity demanded decreases, quantity supplied decreases

Producers produce lesser ipads as the sticks are in surplus

Quantity demanded drop is unhealthy sign to business

http://mashable.com/2010/01/27/9-upcoming-tablet-alternatives-to-the-apple-ipad/

http://tutor2u.net/business/marketing/buying_decision_process.asp

http://www.knowthis.com/principles-of-marketing-tutorials/pricing-decisions/internal-factors-costs/

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